The Union Cabinet of India has approved the Green Energy Corridor Phase-III scheme designed to develop intra-state transmission systems and deploy battery energy storage systems (BESS) across the country.
The move involves a total project outlay of $19.3bn (Rs1.86tn), with the aim of enabling the evacuation of up to 135GW of renewable energy within states and union territories.
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According to the government, the scheme includes Rs1.36tn allocated for developing intra-state transmission networks and Rs500bn for installing 50GW-hours of BESS.
The initiative is due to be set up by financial year 2032–33.
Central Financial Support for the project has been confirmed at Rs540bn. This assistance is intended to offset intra-state transmission charges, a measure expected to help stabilise power costs for end users.
The government has said that state transmission utilities will serve as the main implementing agencies for the project.
Greenfield projects under the transmission component are to be developed using tariff-based competitive bidding, while brownfield upgrades and network strengthening will use a cost plus approach.
Private and public transmission service providers will be able to participate under the Build-Own-Operate-Maintain model.
A key element of the scheme is the deployment of BESS. These are intended to offer grid flexibility, manage intermittency and address peak-hour curtailment issues, as well as help meet power demand outside of solar generation hours.
The Green Energy Corridor Phase-III is expected to support the national target of 900GW of installed non-fossil energy capacity by 2035.
It is also set to contribute to long-term energy security and promote sustainable economic growth by reducing the nation’s carbon footprint.
The construction and operation of new infrastructure are expected to create both direct and indirect jobs in the power, manufacturing and construction sectors, along with skilled employment in battery storage and grid management.
All projects under the scheme will focus on enhancing the integration and evacuation of renewable energy within states and union territories.
